Charlotte Retail Ripe for Investors
Nows a good time to acquire retail in greater Charlotte. NorthState Capital Partners managing member Shane Buckner and BCB Investments owner David Dupree tell us why.(You mean besides the fact that everyone is shopping for bathing suit season?)
For one thing, fundamentals have improved, but not enough to cause a rush to invest.That dynamic has helped absorption. Moreover, retailers seem more interested in space. (The Internet is great, but we're all learning that we need to try things on because we're not as skinny as we think.) David says that hes seen an increase in call volume from prospective retailers.
There are still "compelling value opportunities"in the market because investors aren't convinced about theoverall economic recovery, Shane tells us. That's particularly true in retail because it's highly dependent on job growth.Recently Shane and David, both based in Denver, NC, formed a JV to acquire one such value-add, Markets at Cedar Ridge, a 28k SF center located at 7520 S Tryon St in Charlotte, which is 72% occupied.
Demand for retail space is inching up elsewhere in the Carolinas as well. NY-based Kalikow Group prez Edward Kalikow tells us interest in Grace Park, a Kalikow mixed-use development in Morrisville, has been strong. Besides 128 rental apartments and 52 townhouses, the property also features 90k SF of ground-floor and outparcel retail space, 90% of which has been leased (and 98% of the residential space has been taken). Among others, Starbucks, 5 Hot Chilies, Edward Jones, Anytime Fitness, NC Bagel Caf, and Bite Dental have inked leases. (97% of Bite Dentals business comes from 5 Hot Chilies victims.)